Pan Asia Banking Corporation PLC increased profit in 2017 demonstrating the resilience in operating in challenging market place where the margins came under pressure and the growth moderated.
The annual report for 2017 and the 4Q results released to the Colombo Stock Exchange showed the bank reporting a profit before tax of Rs.1.88 billion for the year ended December 31, 2017.
The after tax profit grew by 11% to Rs.1.39 billion. The earnings per share came down to Rs.3.31 from Rs 4.01 in 2016 due to the new shares issued via the rights issue.
The return on equity also declined to 14.86% from 19.97% a year earlier due to the same reason.
The Bank raised Rs 2.06 billion in March 2017 via a rights issue to strengthen its capital base to both meet the regulatory capital as well as to fund the future asset growth. Meanwhile for the quarter ended in December 31, 2017 (4Q’17), the bank reported pre tax and post tax profits of Rs 491.9 million and Rs 472.4 million respectively, growing at a robust 23 percent and 37 percent each.
The rights issue funds coupled with the full year profits helped the bank to meet the regulatory minimum capital of Rs.10 billion mandated for a licensed commercial bank by the Central Bank.
Bank’s loans and receivables book in 2017 has grown by 13% translating in to a growth of 13%, slightly below the 14.7% growth in the private sector credit in the industry.
During 2017, the bank accomplished a key milestone in crossing a Rs.100 billion advances portfolio to end the year with a gross loans and receivables book of Rs.111.4 billion.
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